Tuesday, 15 April 2014

TransAlta preferred bidder in Western Australia development

TransAlta Corporation has been named the preferred bidder for the South Hedland Power Project.

"Our bid on this development project illustrates the importance and focus that TransAlta places on customers and business in Western Australia. We want to be the company of choice in providing reliable and low cost power to customers in the remote mining regions of the State and are pleased to be adding another asset at an important location like Port Hedland," said Dawn Farrell, President and Chief Executive Officer of TransAlta.

Subject to the finalization of necessary contracts and approvals that will take place during the next several weeks, the project would see TransAlta build, own and operate a 150MW power station in South Hedland, Western Australia.

The investment is estimated at approximately AUD $550M. The comibined cycle gas power station is expected to to be delivering power in 2016 with full commissioning of the station in 2017. The development will be fully contracted under 25 year agreements with Horizon Power and Fortescue Metals Group and may be expanded to accommodate additional customers at later dates. The station will supply Horizon Power's customers in the Pilbara region as well as Fortescue's port operations. The project will be built and funded over the next 30 months.

Western Australia is an important market for TransAlta, where it has been operating for more than 15 years. With six facilities totaling 425 MW of generating capacity and a natural gas pipeline under development, TransAlta has proven experience for providing reliable power to remote operations in the region.